On November 4, Merck took the rare step of launching a targeted financing initiative for sacituzumab govitecan (sac-TMT), securing $700 million from Blackstone to fund the drug's global development through 2026. Merck retains full decision-making and control rights over sac-TMT's development, production, and commercialization, exchanging future revenue rights for this financing round.

Sac-TMT, a blockbuster ADC drug licensed to Merck by SKB BIO-B (06990) in 2022, has long captured industry attention. This financing underscores Merck's strategic commitment to the drug. In recent years, Merck has aggressively expanded its ADC pipeline, forging multi-billion-dollar collaborations with SKB BIO-B and Daiichi Sankyo, among others.

With Keytruda's patent cliff approaching, Merck has doubled down on ADC development. However, progress in other ADC candidates, such as HER3-DXd, has faltered—failing to meet key endpoints in global Phase III trials and leading to withdrawn applications. In contrast, sac-TMT has demonstrated strong momentum, gaining approval in China and making waves at the ESMO conference with two LBAs (including a major plenary presentation) and five posters, emerging as one of the most spotlighted domestically developed innovative drugs.

Sac-TMT has shown breakthrough efficacy in non-small cell lung cancer and other areas. Its combination with Keytruda has overcome treatment barriers in prostate cancer, highlighting its synergistic potential and solidifying its role as a cornerstone in Merck's ADC strategy. Currently, Merck is conducting 15 global Phase III trials for sac-TMT across lung, breast, gastric, and gynecological cancers.

Merck CFO Caroline Litchfield emphasized, "Sac-TMT, a promising TROP2-targeting ADC candidate, holds significant potential. This agreement enables us to fully explore its capabilities while advancing our broad and deep development pipeline." According to Merck’s 2025 ASCO investor briefing, Phase III data from nine sac-TMT trials will be released between 2027 and 2029, further validating its global market potential and reinforcing its central position in Merck’s oncology portfolio.

Blackstone’s investment reflects its sharp acumen in biopharma. Past successes, such as strategic funding for siRNA therapy inclisiran (now a Novartis blockbuster nearing $1 billion in annual sales), demonstrate its foresight. This collaboration with Merck signals Blackstone’s confidence in sac-TMT’s prospects, aiming to accelerate its global rollout.

Backed by Merck’s resources, this China-originated drug is poised for rapid global adoption, potentially becoming a foundational oncology therapy with substantial market opportunities.